The share of the burden of an emissions tax on output borne by the consumer of the polluting output will rise as
A. the tax rises.
B. demand elasticity falls.
C. demand elasticity rises.
D. the tax falls.
Answer: B
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If restrictions on entry and exit of firms are introduced in free markets, ________
A) all existing firms earn equal profits in the long run B) existing firms incur equal losses in the long run C) the market allocates resources efficiently D) resources in the market are not allocated efficiently
Marginal profit equals the difference between marginal revenue and average cost
a. True b. False Indicate whether the statement is true or false
As the market price decreases, the slope of the total revenue curve of a perfectly competitive firm becomes steeper
a. True b. False Indicate whether the statement is true or false
Answer the following statement true (T) or false (F)
1) Innovation is the first discovery of a new product or production process; invention is the first successful commercial introduction of the product or process. 2) Diffusion is the first successful commercial introduction of a product, the use of a new method, or the creation of a new form of business enterprise. 3) Venture capital is another name for retained earnings. 4) The marginal cost to a firm of R&D expenditures is the market interest rate the firm must pay to obtain the needed financing. 5) A firm's optimal amount of R&D occurs where the marginal benefit of this activity exceeds marginal cost by the greatest amount.